With the approaching General Election due on May 7th we are being presented with a blizzard of facts and figures to prove almost any point the politicians care to dream up. In fact in many cases the figures cited, frequently taken out of context, are often used to prove opposite sides of the same point.

However a recent report from the Chief Economist of RBS throws new light on the economy and begs the question is the economic growth we have been experiencing coming to an end? So what are the details?

Firstly the UK economy grew by 2.8% last year making our economy one of the fastest growing in the developed world. Inflation was down to 0.6% at the end of 2014 when we exclude oiland has since dropped 0%. Many economists fear that we will be experiencing deflation for the first time since 1948 holding out the prospect of slowing growth.

The ‘feel good’ factor seems to have kicked in during 2014 with business investment increasing by 7.5%. However despite this and the fact that GDP is up by 3.4% on pre-crisis levels, output per hour, a measure of productivity, is 1.7% below its old level. Why is this? Lack of productivity has long been an issue for the British economy and unless productivity improves quickly, 2014 will be seen as the peak of economic growth for some time.

Let us have your thoughts about how the economy is affecting you. If you are concerned about the productivity of your business and how to improve it talk to your local business advisor or call 0333 444 8522 (lo call number) to be connected to a UKBA productivity specialist.

UK Business Advisors (UKBA) is the nationwide network of consultants and business advisors that helps SMEs to achieve their ambitions. All advisors, who have a wide range of experience knowledge and skills have all held senior positions in larger companies.

Over the last few years UKBA has helped hundreds of business owners achieve their ambitions through hands on practical help and advice. We are now seeking additional advisors to help our clients in all regions. If you have business experience and want to explore an exciting new career and business opportunity please email your CV to David Lee at david.lee@ngba.co.uk.

From 6th April 2014 employers are able to claim Employment Allowance. This Allowance reduces the NIC Class 1 payable by employers by up to £2000 per year. The aim of this allowance is to make it easier and less of a financial burden on small businesses to employ staff.

Not all businesses can claim the Employment Allowance however. Employers that cannot claim this allowance are those that:

employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker

already claim the allowance through a connected company or charity

are a public authority, this includes; local, district, town and parish councils

carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:

NHS services

General Practitioner services

the managing of housing stock owned by or for a local council

providing a meals on wheels service for a local council

refuse collection for a local council

prison services

collecting debt for a government department

The allowance can be claimed through your payroll software by automatically reducing the Employer NICs payable up to £2000. HRMC will automatically carry the claim forward for succeeding tax years.